Shares of industrial battery maker ESS Tech, Inc. (NYSE: GWH) received a boost today after it announced it had received a major IEEE 693 certification indicating that ESS Tech’s products are earthquake resistant, opening up additional sales opportunities.
ESS Tech is the first non-lithium battery manufacturer to receive IEEE 693 High Protection Certification. In tests, ESS Tech batteries withstood 2.5g of overload, enough to survive even major earthquakes.
This could be a major competitive advantage for ESS Tech. Its industrial batteries are less flammable and cheaper than lithium-ion batteries. They now also have IEEE 693 certification, which could attract large customers in earthquake-prone regions like Japan.
During natural disasters, especially earthquakes, cable breaks and power outages are a major concern. In some cases, ESS Tech’s on-site energy storage systems can be an attractive option for day-to-day operations and emergency use.
Moreover, ESS Tech batteries use an electrolyte that is mostly iron and salt water. Even if the battery breaks, the consequences for the environment and people will be less threatening than in the case of lithium-ion batteries. Remember that lithium contact with water can cause a fire.
To date, ESS Tech has received a number of certifications demonstrating the safety, reliability and suitability of its technologies for the first large-scale industrial deployments.
At the start of trading on March 25, GWH shares were priced at $0.69, giving them a market cap of $122.38 million.
